The 65-year-old Mr. Wang is battling Vanke’s largest shareholder, Baoneng Group, a relatively unknown property developer and insurer which has accumulated a 25% stake in Vanke since mid- 2015. Meanwhile, state-owned investor China Resources Group, which was supposed to be Vanke’s protector, has sided with Baoneng against one proposal from Vanke’s board.

Lying in the background is 7% investor Anbang Insurance. Mr. Wang had scrambled to find a white knight for his company, and had proposed a $6.9 billion asset swap deal with Shenzhen Metro Group, which would dilute existing shareholders’ ownership. There is doubt that this thinly veiled antitakeover deal could be carried out given Baoneng’s and China Resources’ objection. The securities regulator has publicly reprimanded the companies and told them to find an amicable solution to the corporate battle, which has raised questions about market transparency and corporate governance of China’s blue-chip companies and of state-owned enterprises.

Now, opportunists seem to be circling as Vanke’s shares take a hit from the boardroom turmoil. On Thursday, China Evergrande Group, another property developer based in Guangzhou, said it bought a 4.68% stake in China Vanke. Evergrande’s shares were up 5.45% on Friday afternoon. The question now is what role, if any, Evergrande will play in the prolonged takeover battle for China Vanke. Evergrande says its stake is an “investment,” but could it turn into a power grab?

SHENZHEN, CHINA - JUNE 27: Vanke founder and chairman Wang Shi speaks during China Vanke 2015 annual general meeting on June 27, 2016 in Shenzhen, Guangdong Province of China. Vanke, China's biggest residential real estate developer, said two major shareholders asked for an extraordinary general meeting to remove founder and chairman Wang Shi and 11 other directors from the board. (Photo by Song Wenhui/VCG via Getty Images)
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“It is hard to say which side will Evergrande take,” says Lucror Analytics. But it’s important to note that Evergrande, China’s No. 2 developer by sales, has been on an aggressive debt-fueled expansion, buying stakes in everything from a soccer club to other listed companies. If becoming No. 1 is now within its ambition, then whose side it takes will be crucial.

If Mr. Wang finds himself on the losing end when the dust settles it would mark a stunning setback for an entrepreneur who has skillfully navigated China’s business world and a tricky relationship with a government wary of independent businessmen.